Clause 7 - Sale of electricity produced by domestic microgeneration
Climate Change and Sustainable Energy Bill
4:00 pm
Joe Benton (Bootle, Labour)
With this it will be convenient to discuss amendment No. 28, in clause 11, page 6, leave out lines 8 to 10.
New clause 8——Sale of electricity generated by microgeneration: power to modify distribution and supply licences etc.—
(1)Where the Secretary of State considers it appropriate to do so for the purpose of increasing the amount of the electricity consumed in Great Britain that is generated by microgeneration, he may make—
(a)relevant modifications of the conditions of a distribution licence or a supply licence held by a particular person;
(b)relevant modifications of the standard conditions of distribution licences or supply licences.
(2)For the purposes of subsection (1), “relevant modifications” means—
(a)in relation to a distribution licence, modifications—
(i)imposing conditions requiring the holder of such a licence to provide information to holders of supply licences about the connection to the distribution system, or use, of microgeneration plant, or
(ii)for the purposes of enabling or facilitating holders of supply licences to satisfy any conditions of such licences of a description mentioned in paragraph (b), and
(b)in relation to a supply licence, modifications imposing conditions requiring the holder of such a licence to offer to acquire electricity generated by microgeneration by the licenceholder’s customers;
and also includes incidental, consequential or transitional modifications.
(3)A modification under subsection (1)(a) of part of a standard condition of a distribution licence or supply licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Electricity Act 1989 (c.29).
(4)Where the Secretary of State makes modifications under subsection (1)(b) of the standard conditions of distribution licences or supply licences, the Gas and Electricity Markets Authority must make (as nearly as may be) the same modifications of those standard conditions for the purposes of their incorporation in distribution licences or, as the case may be, supply licences granted after that time.
(5)Conditions included in a distribution licence or supply licence by virtue of a power conferred by this section—
(a)need not relate to the activities authorised by the licence, and
(b)may do any of the things authorised in relation to licences of that kind by section 7(2) to (4) of the Electricity Act 1989 (c.29) (which applies to the Gas and Electricity Markets Authority’s power with respect to licence conditions under section 7(1)(a) of that Act).
(6)In this section and section (Exercise of powers under section (Sale of electricity generated by microgeneration: power to modify distribution and supply licences etc))—
“distribution licence” has the meaning given by section 6(1)(c) of the Electricity Act 1989 (c.29) (licences authorising supply, etc);
“microgeneration plant” means plant used, or intended for use, for generating electricity by microgeneration, where “plant” has the same meaning as it has in section 82 of the Energy Act 2004 (c.20) (microgeneration);
“supply licence” has the meaning given by section 6(1)(d) of the Electricity Act 1989 (c.29).
(7)In section 33(1) of the Utilities Act 2000 (c.27) (standard conditions of electricity licences)—
(a)omit “or” at the end of paragraph (a), and
(b)after paragraph (b) insert “or
(c)under section (Sale of electricity generated by microgeneration: power to modify distribution and supply licences etc) of the Climate Change and Sustainable Energy Act 2005 (sale of electricity generated by microgeneration: power to modify distribution and supply licences etc)”.’.
New clause 9——Exercise of powers under section (Sale of electricity generated by microgeneration: power to modify distribution and supply licences etc)—
(1)Before making any modification of a distribution licence or a supply licence under section (Sale of electricity generated by microgeneration: power to modify distribution and supply licences etc), the Secretary of State must consult—
(a)the holder of any licence being modified, and
(b)such other persons as he considers appropriate.
(2)The Secretary of State must publish every modification made by him under that section.
(3)The publication must be in such manner as the Secretary of State considers appropriate.
(4)Where the Gas and Electricity Markets Authority makes modifications of standard conditions under section (Sale of electricity generated by microgeneration: power to modify distribution and supply licences etc)(4), it must publish the modifications in such manner as it considers appropriate.
(5)The Secretary of State’s powers under section (Sale of electricity generated by microgeneration: power to modify distribution and supply licences etc) are exercisable only during the period which—
(a)begins with the first anniversary, and
(b)ends with the third anniversary,
of the commencement of that section.
(6)Sections 3A to 3D of the Electricity Act 1989 (c.29) (principal objectives and general duties) apply to the carrying out of functions conferred on the Secretary of State, or on the Gas and Electricity Markets Authority, by section (Sale of electricity generated by microgeneration: power to modify distribution and supply licences etc) or this section as they apply in relation to the carrying out of functions conferred on him, or on it, by or under Part 1 of that Act.’.